The recent marriage of Yahoo! and Tumblr have sparked a few arguments on the Forbes website. People are doubting that this deal was a good one. Yahoo! CEO Marissa Mayer made this move in hopes of probably attracting more traffic to the Yahoo search website since they have lost a huge share of their online marketing to Google in the past three years.
But why are we doubting that this will be successful?
Tumblr’s founder and CEO, David Karp, sold his company for $1.1 billion to Yahoo! Many people are saying that this was too big of a sales price and that Yahoo! paid more than it should have needed to acquire the blogging website of only about 300 millions users. (Yahoo! has about 700 million users worldwide.)
Tumblr boasts its super-simple, minimalistic and attractive blogging platform which CEO Karp has done his best to not have advertising on his users’ blogs. So it sounds like users enjoy the ad-free environment, which might change after Yahoo! becomes in charge of Tumblr. Tumblr only earn $13 million in revenue last year, and I am assuming that Yahoo will choose to make more profit out of this social media platform.
Mayer has already mentioned putting ads on Tumblr’s dashboards and on popular blogs and integrating Tumblr data into search. A problem that they might run into if they incorporate ads into Tumblr is the mobile app that is not compatible to include ads.
This acquisition has left a lot of people and users a bit skeptical because with Tumblr in Yahoo!’s hands, there will definitely need to be changes in order to catch up to Google and Facebook’s market share. WordPress’s co-founder, Matt Mullenweg, had reported last night that “WordPress imported over 72,000 blogs from Tumblr in a single hour”, once users knew of this deal.